Summary of Financial Results for Fiscal Period
Ended June 30, 2018
(2nd Fiscal Period: from October 1, 2017 to June 30, 2018)
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Flows
Notes to Financial Statements1

1【Financial Statement】(1) Balance Sheet（Unit：thousand yen）
ｓｔ

1

2nd Period

Period（September 30, 2017）（June 30, 2018）

AssetsCurrent Assets
Cash and bank deposit
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable

89,6372,031,379-

318,430717

44,262-

2,109,820

Deferred tax assets-

27

Other current assets

64—

Total current assets

90,4194,503,919-

517,918

Accumulated depreciation-(13,928)

Structures, net-

503,989

Fixed Assets
Property and equipment
Structures

Machinery and equipment-

26,507,191

Accumulated depreciation-(716,996)

Machinery and equipment ,net-

25,790,195

Tools, furniture and fixtures-

462,505

Accumulated depreciation-(12,285)

Tools, furniture and fixtures, net
Land-450,219-

3,876,554

Construction in progress

756

1,944

Total property and equipment

756

30,622,903

Leasehold rights-

489,601

Software-3,120

Total intangible assets-

492,721

Intangible assets

Investments and other assets
Guarantee deposits
Long-term prepaid expenses
Total investment and other assets
Total fixed assets
Total assets

10,00021,021-200,702

10,000221,723

10,756

31,337,349

101,175

35,841,269-

18,216

Liabilities
Current liabilities
Operating Accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received-

2,883,702

480

42,470-77,898

96

1,465

-

1,331

577

3,025,086

Long-term loan payable-

15,219,585

Total non-current liabilities-

15,219,585

577

18,244,671

150,000

17,315,550

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Unitholders' equity
Unitholders' capital2Surplus
Unappropriated retained earnings (Accumulated(49,402)

Total surplus(49,402)

281,047

100,597

17,596,597*1 100,597*1 17,596,597

101,175

35,841,269

deficit)
Total unitholders' equity
Total net assets
Total liabilities and net assets

281,0473

(2)【Statement of Income】(Unit: thousand yen)
1st period

2nd period(from May 18, 2017(from October 1, 2017

to September 30,

to June 30, 2018)2017)
Operating revenues
Rental revenues of renewable energy power generation*1 -*1 2,023,037-

2,023,037*1 -*1 1,066,206-

30,595facilities, etc.
Total operating revenues
Operating expenses
Rental expenses of renewable energy power generation
facilities, etc.
Asset management fee
Administrative service fees

475

7,350

Director’s compensation

-

3,600

Taxes and duties

3,692

3,596

Other operating expenses

1,138

66,672

Total operating expenses

5,305

1,178,021(5,305)845,015Interest income

012

Total non-operating income

012Operating income or loss
Non-operating incomes

Non-operating expenses
Interest expenses-

94,496

Borrowing-related expenses-

207,160

Organization expenses

40,00013,130Investment unit issuance expenses

4,000

198,350

Total non-operating expenses

44,000513,137

Ordinary income or loss

(49,305)

331,890

Income or loss before income taxes(49,305)

331,890

Income taxes - current

96

1,467

Income tax - deferred

-

(27)

Total income taxes

96

1,440

Net income or loss

(49,402)

330,449-(49,402)(49,402)

281,047

Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)

4

(3)【Statements of Changes in Unitholders’ Equity】
1st Fiscal Period (From May 18, 2017 to September 30, 2017)(Unit: thousand yen)
Unitholders’ equity
Unitholders’capitalSurplusCapital surplus

Total surplus

or loss

Total

Total net

unitholders’assetsequityBalance as of May 18, 2017
Changes of items during the period
Issuance of new investment unit

150,000

Net loss

150,000(49,402)(49,402)(49,402)(49,402)150,000(49,402)(49,402)100,597

100,597*1 150,000(49,402)(49,402)100,597

100,597

Total changes of items during theperiodBalance as of September 30, 2017

150,000

2nd Fiscal Period (From October 1, 2017 to June 30, 2018)(Unit: thousand yen)
Unitholders’ equity
Surplus

Unitholders’Capital surplus

capitalBalance as of October 1, 2017

Total surplus

or loss

150,000(49,402)(49,402)

Total

Total net

unitholders’assetsequity100,597

100,597

17,165,550

17,165,550

Changes of items during the period
Issuance of new investment unit

17,165,550

Net Income

330,449

330,449

330,449

330,449

17,165,550

330,449

330,449

17,495,999

17,495,999*1 17,315,550

281,047

281,047

17,596,597

17,596,597

Total changes of items during theperiodBalance as of June 30, 2018(4)【Statements of Cash Distribution】
Fiscal Period under Review

Fiscal Period under Review(From May 18, 2017

(From October 1, 2017

to September 30, 2017)

to June 30, 2018)

Unit: YenI

Unappropriatedretainedearnings

Unit: Yen

(49,402,296)

281,047,367-

147,209,520(Cash distributions per unit)-

428,146,500

Profit distributions(-)(2,350)（Profit distributions per unit）-

280,936,980

Distributions in excess of retained(-)(1,542)

earnings-

147,209,520（Distributions in excess of retained

(-)

(808)

(49,402,296)

110,387(accumulated deficit)
II Distributions in excess of retained
earnings

Deduction from unitholders’ capital
III Cash distributions

earnings）
IV

Retained earnings (deficit) carriedforwardCalculation method for cash distributions

In accordance with Articles 47,

In accordance with Articles 47,

Paragraph 1 of Canadian Solar

Paragraph 1 of Canadian Solar

Infrastructure Fund, Inc. (“CSIF’) s

Infrastructure Fund, Inc. (“CSIF’) s

5Articles of Incorporation, the amount

Articles of Incorporation, the amountof cash distributions shall be theof cash distributions shall be theamount of profit in excess of anamount of profit in excess of anamount equivalent to 90% of

amount equivalent to 90% of

distributable profits, as stipulated in

distributable profits, as stipulated in

Article 67-15 of the Act on Special

Article 67-15 of the Act on Special

Measures Concerning Taxation.

Measures Concerning Taxation.

Based on this policy, CSIF will not

Based on this policy, CSIF decided tomake distributions in the first fiscal

make distributions of ¥280,936,980

period because there is no amount of which is the entire amount equivalentprofit. In addition, the unappropriated to the unappropriated retained
loss will be carried forward to the next earnings for the fiscal period underperiod. CSIF does not distribute cash review of ¥281,047,367 excluding
distributions in excess of its earnings, fractions of the distribution per unit
as stipulated in Article 47, Paragraph that are less than ¥1.
2 of its Articles of Incorporation.

CSIF distributes cash in excess ofretained earnings every fiscal period
based on the cash distribution policy
prescribed in Article 47, Paragraph 2of CSIF’s Articles of Incorporation.
Based on this policy, CSIF decided tomake cash distributions in excess ofearnings (return of capital categorized
as a distribution of the reduction incapital for Japanese tax purposes) in
the amount of ¥147,209,520 which isequivalent to 19.8% of the amount ofdepreciation expenses recorded forthe fiscal period under review of¥743,653,467.
Accordingly, the distribution per unit is¥2,350.

(Note) Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy
prescribed in CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power
generation facilities. The amount available for distribution shall be calculated by multiplying NCF by thepayout ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order torealize such policy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of theForecast Power Generation (P50) provided in the independent technical report which is used as a basis forcalculating rents for renewable energy power generation facilities and if actual NCF calculated based on
actual power generation during the applicable fiscal period exceeds forecast NCF, CSIF’s policy is to set“forecast NCF multiplied by the payout ratio” as the upper limit of the amount of cash distributions for theapplicable fiscal period. .
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by
the payout ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥428,146,500 whichis equivalent to 45.9% of forecast NCF amount for the fiscal period under review of ¥932,781,045. Of this,¥147,209,520 which is the amount less of distributions of profit of ¥280,936,980 is distributions in excess ofretained earnings.

6

(5)【Statement of Cash Flow】(Unit: thousand yen)

Cash flows from operating activities
Income (Loss) before income taxes
Depreciation cost
Investment unit issuance expenses
Organization expenses
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Decrease (Increase) in consumption taxes receivable
Decrease (Increase) in prepaid expenses
Decrease (Increase) in long-term prepaid expenses
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accounts payable - other
Increase (Decrease) in accrued expenses
Other, net
Sub-totalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of property and equipment
Purchases of intangible fixed assets
Payment for guarantee deposit
Payments for organization expenses
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the fiscal period
Cash and cash equivalents at the end of the fiscal period

1st period

2nd period(from May 18, 2017(from October 1, 2017

to September 30, 2017)

to June 30, 2018)(49,305)
4,000
40,000
(0)
(717)
480
(64)
(5,607)0(5,606)331,890743,653
198,350
13,130(12)
94,496(318,430)(2,109,820)(43,544)(200,702)
18,216
41,98977,131
1,395(1,152,256)12(93,728)(98)(1,246,071)(756)(10,000)(40,000)(50,756)(31,365,358)(493,165)(11,021)(13,130)(31,882,674)

150,000(4,000)146,000
89,637*1 89,637

18,640,000(536,711)
17,165,550(198,350)
35,070,488
1,941,741
89,637*1 2,031,379(6)【Notes to Financial Statements】[NOTES ON GOING CONCERN PREMISE]
Not applicable.

7

[SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES]
1.Method of depreciation and amortization of non-current(1) Property and equipment
The straight-line method is adopted. In addition, theassetsuseful lives of major property and equipment are asshown below:
Structures .................................... 22 - 25 years
Machinery and equipment ........... 22 - 25 years
Tools, furniture and fixtures ......... 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, theuseful life is as shown below:
Software ...................................... 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.
2.Standards for revenue and expense recognition

Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax anddepreciable assets tax, among other taxes, on theinfrastructure assets held, of the tax amount assessed anddetermined, the amount corresponding to the calculation
period is accounted as rental expenses. In addition,
reimbursement such as fixed assets tax, which is paid tothe seller and other persons on the acquisition of
infrastructure assets and other assets (“the amountequivalent to the fixed assets taxes and other taxes”) is notrecognized as rental expenses but included in theacquisition cost of the concerned infrastructure assets andother assets. In the fiscal period under review, the amountequivalent to the fixed assets tax and other taxes includedin the acquisition cost of infrastructure assets and otherassets is 10,811 thousand yen.

3.Scope of funds in statement of cash flows

Funds (cash and cash equivalents) in statement of cash
flows consist of cash on hand, demand deposits andshort-term investments with a maturity of three months orless at the date of acquisition that can readily be converted
into cash and that are subject to insignificant risks ofchanges in value.

4.Method of hedge accounting(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap
that meets the requirements for special treatment.
(2) Hedging instruments and hedged items:･

Hedging

instruments……Interest

rate

swap

transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as
set forth in the CSIF’s Articles of Incorporationaccording to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for
specialtreatment,

and

thus

the

evaluationofeffectiveness is omitted.

85.Other significant matters serving as the basis for

Accounting for Consumption tax

preparation of financial statements

Consumption tax and local consumption tax are excluded
from the corresponding transaction amount.

［NOTES ON UNAPPLIED ACCOUNTING STANDARDS］(Unapplied Accounting Standards）
・Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 published on March 30, 2018 by the
Accounting Standards Board of Japan)
・Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 published on
March 30, 2018 by the Accounting Standards Board of Japan）
1.Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) havejointly developed a converged accounting standard on revenue recognition and issued “Revenue from Contracts
with Customers” (IFRS 15 by IASB and Topic 606 by FASB) in May 2014. IFRS 15 is effective for annual reporting
periods beginning on or after January 1, 2018 and Topic 606 is effective for annual reporting periods beginning on orafter December 15, 2017. In this connection, the ASBJ developed a converged accounting standard on revenue
recognition and issued the standard together with its implementation guidance.
The ASBJ followed two policies in developing accounting standard for revenue recognition. That is, to incorporate
all basic IFRS 15 requirements to ensure comparability of financial statements, but also to consider additional
alternative treatments based on practices applied by Japanese companies so that the standards would not
significantly impair comparability.
2.Planned date of application
CSIF will apply the standard at the beginning of the fiscal period ending December 2021.
3.Effect of application of the standard
The effect that the application of Accounting Standard for Revenue Recognition will have on the financial
statements is currently under evaluation.

[NOTES TO BALANCE SHEET]*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations(Unit: thousand yen)
As of September 30, 2017
50,000

As of June 30, 2018
50,0009

[NOTES TO STATEMENT OF INCOME ]*1 Breakdown of profits and losses from the rental business of renewable energy power generation facilities, etc.
(Unit: thousand yen)
From May 18, 2017 to

From October 1, 2017 to

September 30, 2017

June 30, 2018

1.Operating revenue from the rental business of renewable energy power generation facilities, etc.
Rental revenue of renewable energy power generation facilities, etc.
(Basic rent)(Variable rent linked to actual output )(Incidental income)
Total operating revenue from the rental business of renewable energy
power generation facilities, etc.

-

1,370,356-

2,023,037

652,674
6

2.Operating expenses from the rental business of renewable energy power generation facilities, etc.
Rental expenses of renewable energy power generation facilities, etc.
(Management entrustment expenses)-(Repair and maintenance costs)--(Taxes and duties )-154,281(Utilities expenses)--

133,827(Insurance expenses)-

11,632(Depreciation expenses)-

743,210(Land rent )-23,253(Other rental cost)--

Total operating expenses from the rental business of renewable energy
power generation facilities, etc.

-

1,066,206

3.Profits and losses from the rental business of renewable energy power generation facilities, etc.
956,830-[NOTES TO STATEMENT OF CHANGES IN NET ASSETS]*1 Total number of authorized investment units and the total number of investment units issued and outstanding

Total number of authorized investment units
Total number of investment units issued and outstanding

From May 18, 2017

From October 1, 2017

to September 30, 2017

to June 30, 2018

10,000,000 units

10,000,000 units

1,500 units

182,190 units[NOTES TO STATEMENT OF CASH FLOWS]*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet(Unit: thousand yen)
From May 18, 2017

From October 1, 2017

to September 30, 2017

to June 30, 2018

Cash and deposits

89,6372,031,379

Cash and cash equivalents

89,6372,031,379[NOTES ON LEASE TRANSACTIONS]
Operating lease (as the lessor)
Future minimum lease payments(Unit: thousand yen)

Fiscal period ended
September 30, 2017

Fiscal period ended
June 30, 2018

Within one year-

2,176,829

Longer than one year-

36,039,821

Total

-

38,216,650

10

[NOTES ON FINANCIAL INSTRUMENTS]
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or
issuing investment units. The basic policy is to build stable and sound financial operations to maintain andincrease earnings in the medium to long term and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets
and are exposed to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk isdeducted through the appropriate balancing of the loan period and the interest rate type, and diversification oflenders, and the appropriate management of various types of indexes, especially the general application of theupper limit of the ratio of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices,values are reasonably calculated. Since certain assumptions are used for the calculation of fair values, they may
change if different assumptions are used.

2.Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of September 30, 2017, and thedifference between them. Financial instruments whose fair values are extremely difficult to estimate are notincluded in the table.
(Unit: thousand yen)Book value

Fair value

Difference(1) Cash and deposits

89,637

89,637-

Total assets

89,637

89,637-(2) Accounts payable

480

480

-

Total liabilities
480
480(Note 1) Methods used for estimating the fair values of financial instruments
Assets(1) Cash and deposits. These financial instruments are settled in the short term, and their fair values are deemed
to approximate their book value. Therefore, the book values are used as the values.
Liabilities(2) Accounts payable. These financial instruments are settled in the short term, and their fair values are deemed
to approximate their book value. Therefore, the book values are used as the values.
The table below shows the book value and fair values of financial instruments as of June 30, 2018, andthe difference between them. Financial instruments whose fair values are extremely difficult to estimate
are not included in the table.
(Unit: thousand yen)Book value(1) Cash and deposits(2) Operating accounts receivable
Total assets

2,031,379

Fair value
2,031,379

Difference-

318,430

318,430-

2,349,809

2,349,809-(3) Current portion of long-term loans payable

2,883,702

2,882,035(1,667)(4) Long-term loans payable

15,219,585

15,358,035

138,450

18,103,288

18,240,071

136,783

Total liabilities(5) Derivative transaction(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivativetransactions
Assets(1) Cash and deposit(2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate theirbook value. Therefore, the book values are used as the values.
Liabilities11(3) Current portion of long-term loans payable(4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed
every certain period is applied to loans, and thus the market value is considered to be close to the book value.
Accordingly, the book value is used. In addition, for the long-term loans payable at variable interest rates
subject to the special treatment of interest rate swap (refer to the “Notes on derivative transactions” below), thefair value is measured by discounting the total sum of the principal and interest treated together with the saidinterest rate swap as one at the interest rate that is applied when the similar loan is obtained and that isreasonably estimated.
(5) Derivative transaction
Please refer to the “Notes on derivative transactions” below.
(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (September 30, 2017)
Longer than
one year,within two
years
89,637-

Within one
year(1) Cash and deposits
Total

89,637-Longer than
two years,
within threeyears-

Longer than
three years,
within four
years-

(Unit: thousand yen)
Longer thanfour years,
Longer than
within five
five years
years
-

-

Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2018)(1) Cash and deposits(2) Operating accounts
receivable
Total

Longer thanWithin one
one year,year
within two
years
2,031,379-

Longer than
two years,
within threeyears-

Longer than
three years,
within four
years-

(Unit: thousand yen)
Longer thanfour years, Longer than
within five
five years
years-

318,430

-

-

-

-

-

2,349,809

-

-

-

-

-

(Note 3) Scheduled redemption amount of loans payables after the closing date (September 30, 2017)

Not applicable.
Scheduled redemption amount of loans payables after the closing date (June 30, 2018)

Within one
year(3) Current portion of
long-term loans payable(4) Long-term loans payable
Total

Longer than
one year,within two
years

2,883,702
2,883,702-

Longer than
two years,
within threeyears-

Longer than
three years,
within four
years

(Unit: thousand yen)
Longer thanfour years, Longer than
within five
five years
years

-

-

-

845,487

1,600,846

838,811855,747

11,078,692

845,487

1,600,846

838,811855,747

11,078,692[NOTES ON SECURITIES]
Prior fiscal period (as of September 30, 2017)
Not applicable.
Current fiscal period (as of June 30, 2018)
Not applicable.

12

[NOTES ON DERIVATIVE TRANSACTIONS]
1.Those to which hedge accounting is not applied
Prior fiscal period (as of September 30, 2017)
Not applicable.
Current fiscal period (as of June 30, 2018)
Not applicable.
2.Those to which hedge accounting is applied
Prior fiscal period (as of September 30, 2017)
Not applicable
Current fiscal period (as of June 30, 2018)(Unit: thousand yen)
Method ofType of derivativehedge
transactions and otheraccounting
matters

Major items
hedgedContract amount and otheramounts

Fair value

Longer than
one year

Method ofcalculation ofsaid market
valueInterest rate swap
transaction
Long-term
Fixed
loans
15,195,201
14,399,405(Note)
payment/variablepayablereceipt(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portionof long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value ispresented together with the fair value of (Note 1) (3) Current portion of long-term loans payable and (4)Long-term loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial
instruments, among other matters” .

Specialtreatmentof interest
rate swap[NOTES ON RETIREMENT BENEFITS]
Prior fiscal period (as of September 30, 2017)
Not applicable.
Current fiscal period (as of June 30, 2018)
Not applicable.
[NOTES ON TAX EFFECT ACCOUNTING]
Prior fiscal period (as of September 30, 2017)
Not applicable.
Current fiscal period (as of June 30, 2018)(1) Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
Fiscal period ended
September 30, 2017

Fiscal period ended
June 30, 2018

Accrued business tax not deductible from taxable
income-27

Total deferred tax assets-

27

Net amount of deferred tax assets

-

27

13

(2) Breakdown of each major item that causes a significant difference between the effective statutory tax rate and therate of the burden of corporate tax and other taxes after the application of tax effect accounting
Fiscal period ended
Fiscal period ended
September 30, 2017
June 30, 2018
- (Note)Effective statutory tax rate
(Adjustment)
Dividends paid deductible for tax purpose
Loss carried forward and deducted for the period
OthersRate of burden of corporate tax and other taxes after
the application of tax effect accounting

31.74%- (Note)- (Note)- (Note)(26.87)%(4.72)%
0.28%- (Note)

0.43%（Note）Omitted because CSIF recorded a loss before tax.

[NOTES ON SHARE OF PROFIT (LOSS) OF ENTITIES ACCOUNTED FOR USING EQUITY METHOD, ETC.]
Prior fiscal period (as of September 30, 2017)
Not applicable.
Current fiscal period (as of June 30, 2018)
Not applicable.
[NOTES ON RELATED PARTY TRANSACTIONS]
1.Major corporate unitholders
Prior fiscal period (from May 18,2017 to September 30, 2017)
Attributes

Name ofcompany

Address

Capital or
Relationship
Unitholding
investment Business or
ratio(thousand occupation
Interlocking
Business(owned)yen)
officers relationshipTransactions

Amount oftransactions(thousand
yen)

Item

Installation,
operationand50F
mainteShinjuku
nanceCanadian
Mitsuibusiness of
Acceptance
Total
Controlling
Solar
Building,
Controlling
100,000 equipmentof
150,000
amount of
100.0%
None
unitholder
Projects 2-1-1 Nishi
unitholder
forinvestment
investment
K.K.
Shinjuku,
photovoltaic
Shinjuku-ku
power, Tokyogenerationand other
new energy(Note 1) Of the amounts described above, the transaction amount does not include consumption taxes and other taxes.
(Note 2) With respect to the transaction conditions, the market price and other conditions are referred to in the decision.

Endingbalance(thousandyen)

150,000

Current fiscal period (from October 1,2017 to June 30, 2018)
Not applicable.
2.Affiliates
Prior fiscal period (from May 18,2017 to September 30, 2017)
Not applicable.
Current fiscal period (from October 1,2017 to June 30, 2018)
Not applicable.

14

3.Fellow Subsidiaries
Prior fiscal period (from May 18,2017 to September 30, 2017)
Attributes

Name ofcompany

Address

Capital or
Relationship
Unitholding
investment Business or
ratio(thousand occupation(owned) Interlocking Businessyen)
officers relationship

33F
Shinjuku
Subsidiary CanadianCenterofSolar Asset Building,controlling Manage- 1-25-1 Nishi
unitholder ment K.K. Shinjuku,
Shinjuku-ku, Tokyo

150,000

Investment
managementbusiness-

There areinterlocking
officers

Transactions

Delegation Payment ofof asset
remunemanageration for
ment
organizer

Amount oftransactions(thousand
yen)

Item

Endingbalance(thousandyen)

40,000--Current fiscal period (from October 1,2017 to June 30, 2018)
Not applicable.
4.Officers and major individual unitholders
Prior fiscal period (from May 18,2017 to September 30, 2017)
Not applicable.
Current fiscal period (from October 1,2017 to June 30, 2018)
Not applicable.
[NOTES ON ASSET RETIREMENT OBLIGATIONS]
Prior fiscal period (from May 18,2017 to September 30, 2017)
Not applicable.
Current fiscal period (from October 1,2017 to June 30, 2018)
Not applicable.

[NOTES ON INVESTMENT AND RENTAL PROPERTY]CSIF has renewable energy power generation facilities, etc. . The book value , change during the period and fairvalue at the end of the period are as shown below.
(Unit: thousand yen)
Fiscal period ended
September 30, 2017

Fiscal period ended
June 30, 2018

Book value (Note 2)
Beginning balance-

Change during the period (Note 3)-

31,110,561

Ending balance-

31,110,561-

35,963,000

Fair value at the end of the period(Note 4)-(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities,
and thus with respect to the book value and the fair value, the amount of the renewable energy power generation
facilities and real estate are stated together as one.
(Note 2) The book value is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period primarily consisted of the increase due to acquisition of fifteen photovoltaic power
generation facilities (31,853,772 thousand yen), and the decrease due to depreciation expenses (743,210 thousandyen).
(Note 4) The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles ofIncorporation on the basis of the appraised value in the range stated in the valuation report with the date of the value
opinion on June 30, 2018, which was obtained from PricewaterhouseCoopers Sustainability LLC.

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended
September 30, 2017 (the 1st period) and the fiscal period ended June 30, 2018 (the 2nd period) are as stated in the“Notes to statement of income” above.
[NOTES ON SEGMENT INFORMATION]
1.Segment information
Since CSIF has a single segment of the rental business of infrastructure assets, the segment information isomitted.

15

2.Related Information
Prior fiscal period (from May 18,2017 to September 30, 2017)(1) Information on products and services
Information is omitted because operating revenue is not generated.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue is not generated.
② Property and equipment
Information is omitted because the Investment Corporation does not hold property, plant and equipment.
(3) Information on major customers
Information is omitted because operating revenue is not generated.
Current fiscal period (from October 1,2017 to June 30, 2018)(1) Information on products and services
Information is omitted because operating revenue from a single product/service to outside customers
exceeds 90% of the operating revenue on the statement of income.
(2) Information on regions① Operating revenue
Information is omitted because operating revenue from outside customers in Japan exceeds 90% of theoperating revenue on the statement of income.
② Property and equipment
Information is omitted because the amount of property and equipment located in Japan exceeds 90% of
the amount of property and equipment on the balance sheet.
(3) Information on major customers(Unit: thousand yen)
Total net revenue

Name of related segment

1,976,071

Renewable energy power generation
facilities, etc. rental business

CLEAN GUADALQUIVIR K.K.

11,895

Renewable energy power generation
facilities, etc. rental business

Univergy 12 G.K.

35,064

Renewable energy power generation
facilities, etc. rental business

Name of customer
Tida Power 01 G.K.

[NOTES ON PER UNIT INFORMATION]

Net assets per unit
Net income (Net loss) per unit

Prior fiscal period
From May 18,2017
to September 30, 201767,065 yen(32,934) yen

Current fiscal period
From October 1,
June 30, 2018
96,583 yen
2,007 yen

(Note 1) Net income (Net loss) per unit is calculated by dividing net income (net loss) by the average number of investment units
during the period. In the previous fiscal period, a loss was posted and there were no dilutive investment units, and thus
diluted loss per unit is not stated. With respect to diluted profit per unit for the period under review, there are no dilutive
investment units, and thus the statement is omitted.
(Note 2) The basis of calculation of net income (net loss) per unit is as follows.

Prior fiscal period
From May 18,2017
to September 30, 2017
Net income (Net loss) (Thousand yen)Amount not attributable to common unit
holders (Thousand yen)
Net income (Net loss) attributable to
Common unit holders (Thousand yen)
Average number of investment units during
the period (Units)

Current fiscal period
From October 1,2017
June 30, 2018(49,402)

330,449--(49,402)

330,449

1,500

164,642

16

[NOTES ON SIGNIFICANT SUBSEQUENT EVENTS]
1.Issuance of new investment units
CSIF passed a resolution on the issuance of new investment units (hereinafter referred to as the “Offering”) at themeeting of the board of directors held on August 14, 2018, and August 29,2018 as shown below. Payment for theissuance of new investment units through public offering was completed on September 5,2018.
(i) Issuance of new investment units through public offering
Number of new investment units issued
46,667 units
26,697 units for the Japanese public offering
19,700 units for the international offering
Issue Price (Offer Price)
102,180 yen per unit
Total Issue Price (Total Offer Price)
4,768,434,060 yen
Amount to be paid in (Issue amount)
96,625 yen per unit
Total amount to be paid in (Total Issue amount) 4,509,198,875 yen
Payment date
September 5, 2018
Purpose of funding
The funds from the primary offering were allocated to part of
the funds for acquisitions of specific assets (as defined in
Article 2, paragraph 1 of the Act on Investment Trust andinvestment Corporation ; the same shall apply hereinafter.)(ii) Issuance of new investment units through third-party allotment
Number of new investment units issued (upper limit) 2,333 units
Amount to be paid in (Issue amount)
96,625 yen per unit
Total amount to be paid in (Total Issue amount)
225,426,125 yen
Allottee and number of investment units allotted(upper limit)
Mizuho Securities 2,333 units
Payment date
September 5, 2018
Purpose of funding
The funds through third party allotment are the fundon hand by depositing with financial institutions until
payment and are scheduled to be allocated to partof the funds for future acquisitions or repayment ofborrowings.
2.Borrowings of the Funds
CSIF decided to borrow funds for the purpose of the appropriation of the funds obtained as set forth in “3.
Acquisition of assets” below at the meeting of the board of directors held on August 14,2018 and plans to borrowthe funds described below on September 6,2018.
CSIF completed the borrowing of funds, as described below, on September 6, 2018. The borrowed funds wereapplied to partial fund for acquisition of the newly acquired assets described in “3. Acquisition of assets” below and
expenses related thereto (including consumption taxes).
Borrowing
Interest
Repayment
SecurityType
Drawdown
Lenders
AmountRate
Repayment date
Method(Note 4)(Note 1)Date(million yen) (Note 2)(Note 3)Longterm

Longterm

Shinsei Bank, Limited(arranger)
Sumitomo Mitsui Banking
Corporation (arranger)
MUFG Bank, Ltd.
(co-arranger)
The Nanto Bank, Ltd.
Shinsei Bank, Limited(arranger)
Sumitomo Mitsui Banking
Corporation (arranger)
MUFG Bank, Ltd.
(co-arranger)

8,000(Note 5)

Base rate
Corresponding
Partialplus 0.45% September date in ten years
Unsecured,
installment(Note 6)
6, 2018
from theunguaranteed(Note 5)(Note 7)
drawdown date

850
(Note 8)The earlier date of(i)June30,2020 orBase rate(ii) the first
SeptemberLump-sum Unsecured,plus 0.20%
interest payment
6, 2018
payment unguaranteed(Note 9)date on or after
the consumption
taxes refund date

(Note 1) Long-term refers to borrowings that have a period of over a year from the drawdown date to the repayment date.
(Note 2) Finance related costs paid to the lenders are not included.
(Note 3) CSIF can make an early repayment of all or part of our borrowings subject to certain conditions, such as prior written notice to the relevant lenders.
(Note 4) The loan agreements contain restrictive financial covenants to be applied on each settlement date of CSIF, such as the total
amount of interest-bearing liabilities to the total asset value (LTV), debt-to equity ratio and debt service coverage ratios as
indicators to determine the ability of CSIF to repay the loan. Breaches of such covenants for 2 successive fiscal periods or an
occurrence of an acceleration event could result in being required to grant security interests in favor of the lenders.
(Note 5) CSIF intends to enter into balloon amortization loans, which has an initial principal repayment date of December 31, 2018, andsubsequent principal repayment dates shall be the last day of June and December (if a principal repayment date is not a businessday, then the payment shall be made on the immediately succeeding business day; provided, however, that if such payment day
falls into the following month, then the payment shall be made on the immediately preceding business day) and the remaining
principal shall be repaid as a balloon payment on the repayment date. Principal repaid as a percentage of the outstanding balance as at
December 31, 2018 will be 2.418%.
(Note 6) The applicable base rate for each interest calculation period (being 6 months, excluding the first and last interest period) for the
calculation of the interest payable on the interest payment date shall be the 6 month Japanese yen TIBOR (Tokyo Interbank
Offered Rate) announced by the General Incorporated Association JBA (Japanese Bankers Association) TIBOR Administration on
the 2nd business day prior to the Drawdown Date for the first interest calculation period and on the 2nd business day prior to thebeginning of each relevant interest calculation period thereafter. The applicable base rate shall be revised for each interest period.

17However, if a corresponding base rate is not available for an interest calculation period, the base rate shall be calculated using themethod agreed in the relevant loan agreement.
(Note 7) The interest rate for the full amount of the Term Loan shall be effectively fixed at 1.042% with the execution of the interest rate swap
agreements(Note 8) CSIF stated payment of consumption tax as the use of the funds borrowed and plans to use any refund of consumption tax to repay
the funds borrowed.
(Note 9) The applicable base rate for each interest calculation period (being 1 month, excluding the first and last interest period) for the
calculation of the interest payable on the interest payment date shall be the 6 month Japanese yen TIBOR (Tokyo Interbank
Offered Rate) announced by the General Incorporated Association JBA (Japanese Bankers Association) TIBOR Administration on
the 2nd business day prior to the Drawdown Date for the first interest calculation period and on the 2nd business day prior to thebeginning of each relevant interest calculation period thereafter. The applicable base rate shall be revised for each interest period.
However, if a corresponding base rate is not available for an interest calculation period, the base rate shall be calculated using themethod agreed in the relevant loan agreement.

3. Acquisition of assets
The Investment Corporation decided to acquire the following assets with the funds of “2. Borrowings of the Funds”
above according to the basic policy for asset management set forth in the Articles of Incorporation at the meeting of
the board of directors held on August 14,2018 and plans to acquire the said assets on September 6,2018.
CSIF completed the acquisition of assets, as described below, on September 6, 2018.
Acquisition
Asset
Project nameLocationPrice
numberAcquired from
(Note 2)
(Note 3)(million yen)
(Note 1)
(Note 4)
S-16

CS Ena-shi Power Plant

S-17

CS Daisen-cho Power Plant (A)Saihaku-gun, Tottoriand (B)

Ena-shi, Gifu

757 Univergy 23 G.K.

S-18

CS Takayama-shi Power Plant

Takayama-shi, Gifu

Total

10,447 CLEAN ENERGIES XXI G.K.
326 Univergy 10 G.K.
11,530-(Note 1) Asset number is the number that we have assigned to our projects, based on the classification of the renewable energy project.
The S denotes a solar energy project. The same applies herein.
(Note 2) “CS” is the abbreviation for Canadian Solar. The same applies herein.
(Note 3) Based on the location of the land or one of the lands upon which the photovoltaic power generation is installed, as described in theproperty registry. In either case, the address is described up to the city or district.
(Note 4) With respect to CS Ena-shi Power Plant, on the acquisition date, surface right was established for CSIF to hold photovoltaic power
generation facilities and to engage in business related thereto by CS Mie Yamada G.K., the surface right establisher. The
anticipated acquisition price for CS Ena-shi Power Plant includes a lump-sum fee in the amount of ¥44,844,848 to be paid to CS
Mie Yamada G.K. for the surface rights, which covers the duration of the term of the surface rights until September 30, 2042.

(7)【Supplementary Schedules】
1. Schedule of Securities
Not applicable.
2. Status of Contract Amounts, etc. and Estimated Fair Value of Derivative Transactions and Forward Exchange
Transactions(Unit: thousand yen)
Category

Type

Contract amount, etc. (Note 1)
Longer than one year

Fair value(Note 2)OTC
Interest rate swap transactions(over-the-counter)pay-fixed, receive-variable

15,195,201

14,399,405

-

Total

15,195,201

14,399,405-(Note 1) The contract amount, etc. of interest rate swap transactions is based upon Notional principal amount.
(Note 2) Fair value is omitted because the transaction meets the requirement for special treatment based on the
Accounting Standard for Financial Statements

3. Schedule of Assets Related to Real Estate
Not applicable.

18

4. Schedule of Assets Related to Renewable Energy Power Generation Facilities(Unit: million yen)

Asset TypeBalance
Increase Decrease Balance
as ofduring the during the as of June
October 1,
periodperiod30, 2018
2017

Accumulated
depreciation or
accumulated
amortization

Net balance
as of June Remarks
Depreciation 30, 2018
during theperiodStructures

-

517

-

517

13

13

503

(Note)

Machineryandequipment-

26,507-26,507716

716

25,790(Note)

-

462

-

462

12

12

450

(Note)(Note)

Property Tools,
furniture andandequipment fixtures
Land

-

3,876

-

3,876

-

-

3,876

Constructionin progress

0

1

-

1

-

-

1

Total

0

31,366-

31,366743

743

30,622

-

489

-

489

-

-

489

-

3

-

3

0

0

3

-

493

-

493

0

0

492

LeaseholdIntangible rights
assets Software
Total(Note)(Note) The “Increase during the Period” is entirely due to the acquisition of Photovoltaic power generation facilities (October 31, 2017 andFebruary 1, 2018).

5. Schedule of Other Specified Assets
Not applicable.
6. Schedule of Investment Corporation Bonds
Not applicable.

197. Schedule of Loans Payable

Category

LenderBalance Increase Decrease Balance
as ofduringduringas of
AveragetheJune 30, interest
Octoberthe1, 2017
periodperiod2018
rate (%)(million(million(million(million (Note 1)
yen)
yen)
yen)
yen)

Shinsei Bank,
Limited

-

2,400

77

2,322

Mizuho Bank,
Ltd.

-

1,500

48

1,451

Sumitomo
Mitsui
Banking
Corporation

-

1,500

48

1,451

MUFG Bank,
Ltd.

-

1,000

32

967

Resona Bank,
Limited

-

1,800

57

1,742

ORIX Bank
Corporation

-

1,000

32

967

The
Hiroshima
Bank, Ltd.

-

1,800

57

1,742

The Nanto
Bank, Ltd.

-

1,800

57

1,742

-

900

28

871

-

900

28

871

THE MIE
BANK, LTD.

-

200

6

193

THE
TOCHIGI
BANK, LTD.

-

900

28

871

Shinsei Bank,
Limited

-

1,040

-

1,040

Mizuho Bank,
Ltd.

-

500

-

Sumitomo
Mitsui
Banking
Corporation

-

500

-

Long
The Oita-term
Bank, Ltd.
loans
payable THE SHONAIBANK, LTD.

Sumitomo
Mitsui
Banking
Corporation

-

900

31

Total

-

18,640536

0.84500(Note 2)

Repayment
date

Repayment method

Use

Remarks

Repaymen
October 31, t in partial (Note Unsecured
2027
installment
4) Unguaranteeds

The earlier
date of(i)June30,201
500
9 or (ii)the first
Lump-suminterest(Note Unsecured
0.29945
repayment
payment date3) Unguaranteed
at maturity
on or after the500
consumption
tax refund
date

868 0.57636
18,103February 1,
2021

-

-

Repayment in partial (Note Unsecured
installment
4) Unguaranteed
s
-

-

-

(Note 1) The average interest rate is the weighted-average figure during the period and is rounded to the sixth decimal place.
(Note 2) CSIF conducts interest rate swaps which fix interest rates to hedge interest rate risk, and the average interest rate is theweighted-average figure during the period taking the effect of interest rate swaps into consideration.
(Note 3) CSIF plans to use any refund of consumption tax paid in connection with the acquisition of acquired assets to repay the funds borrowed.
(Note 4) Funds are used mainly for acquisition of renewable energy power generation facilities .
(Note 5) Scheduled redemption amounts of long-term loans payable within five years after the date of the balance sheet are as follows.

(Unit: thousand yen)
Within one
year
Long-term loans
payable2,883,702

Longer than
one yearwithin two
years

Longer than
two years
within threeyears

Longer than
three years
within fouryears

Longer thanfour years
within fiveyears

Longer than fiveyears

845,487

1,600,846

838,811855,747

11,078,692

20